The Employers' Liability Tracing Office (ELTO) manages a market-wide electronic database of employers' liability (EL) policy records. The database, known as the employers' liability database (ELD) will enable claimants and or their representatives to easily access information about old Employers' Liability insurance policies and help to speed up the process in the event of a potential Employers' Liability claim.
FCA regulations state that since 1 April 2012 insurers must supply:
Brokers, particularly those operating delegated authorities (DAs), MGAs and software houses are important stakeholders for ELTO, since they will be the link between the insurer and the client, in capturing policy information for the ELD.
From 1 April 2011: Mandatory policy record data for new and renewed policies to be added to ELD.
From 1 April 2012: Additional information to be supplied, namely full listing of Subsidiary Companies and all ERNs (including those of Subsidiary Companies if different from parent/policyholder).
We can collect the data from you on individual cases or, if you prefer, in volume, through a spreadsheet of all your AXA cases. Individual risk presentations will need to provide all insurers that write EL insurance with the relevant mandatory information required for ELD.
An ERN is allocated to all UK businesses where any employee is paid above the prevailing PAYE threshold. The ERN is shown on the P45, P60, P11/D and many payslips.
A minority of employers do not have an ERN, including those that:
Some employers may possess more than one ERN, including those operating separate PAYE schemes for different business locations, mergers or company directors. We need to be supplied with all ERNs.
The FCA's regulations require insurers capture the following information, within three months of policies incepting or renewing:
Insurers are collecting EL policy data in different ways. Some insurers are happy for intermediaries to adapt existing Bordeaux, whereas others are requesting information to be supplied in an Excel template.
The FCA's regulations require insurers to publish EL policy data in an easily accessible electronic database. ELD fulfils this requirement.
BIBA has helped to produce a guide specifically for brokers, MGAs and DAs which is available to download. You can also talk to your usual AXA contact and we can give guidance on to make sure that EL policy data is captured and supplied in a consistent way.
ELTO has adopted the Employer Reference Number (ERN) as the most effective unique identifier available. This is also commonly referred to as 'Employer PAYE Reference'. Insurers will be required to supply the ERN to the ELD, and for policies transacted by a broker or DA, will need them to obtain this information.
UK businesses are required to have the ERN, which is the reference number for their employees' income tax and national insurance contributions. A minority of employers do not have an ERN. The only exemption is where the employer pays all their employees below the PAYE threshold.
Since April 2012, insurers are required to supply the EL policy data, including ERNs, for the policyholder and all subsidiaries within 3 months of policy covering incepting or renewing.
The purpose of ELTO is to provide claimants and or their representatives with information to help them trace an EL insurer. However, brokers will also be able to use the service where their insurer is facing a specific claim and they need to identify their former insurer.